IFC Supports Expansion of Family-Owned Hotel in Mauritania

Washington, D.C./ Nouakchott, May 19,
2006 — The International Finance Corporation, the World Bank Group’s
private sector arm, said today that it will provide a €1.7 million loan
for the renovation and expansion of a three-star hotel in Nouakchott, Mauritania’s
capital. Hôtel Halima is owned by a local family, the Kabages, who established
it in 1992 and have successfully managed it since then.

As the Mauritanian economy expands, the development of small and medium-size
enterprises becomes ever more relevant to ensure breadth and sustainability
of the country’s business activities. In Hôtel Halima, IFC is financing
a small hotel business that is trying to satisfy a growing demand of visitors
to Mauritania. IFC collaborated with Proparco, the private sector
financing arm of France’s development assistance agency, to structure
the long-term €3.4 million financing package. In addition to the
loan, IFC is advising Hôtel Halima on how to strengthen its marketing function
and quality of service. On the environmental side, IFC is ensuring
proper implementation of on-site wastewater treatment and fire and life
safety measures as part of the project.

IFC’s loan will help restore Hôtel Halima’s 45 rooms, conference rooms,
and its restaurant, and help to build an extension with 32 new rooms, a
business center, health club, and retail space. The hotel will offer
reasonably priced accommodations to business travelers and tourists who
up to now have not had a quality alternative to more expensive four-star
international hotels in Nouakchott.

Richard Ranken, IFC’s director for Sub-Saharan Africa, said,“IFC
is pleased to support this highly visible example of an SME’s long-term
commitment to grow. Our investment in Hôtel Halima underlines the importance
that IFC attaches to facilitating private participation in key business
sectors in Mauritania, and to helping generate a positive investment response
in support of the government’s economic and good governance reforms.”

Dimitris Tsitsiragos, IFC’s director for Global Manufacturing and Services,
said, “Our involvement in this project increases the supply and quality
of service in Mauritania’s important but underserved mid-market hotel
sector by promoting a successful family-owned business.”

Aziz Kabage, shareholder and managing director of Hôtel Halima, said, “The
hotel has strong growth potential because of its size and strategic location
downtown near the business district, embassies, and government offices.
Hôtel Halima will benefit from and add to the growing economy of
Mauritania.”

The International Finance Corporation is the private sector arm of the
World Bank Group and is headquartered in Washington, D.C. IFC coordinates
its activities with the other institutions of the World Bank Group but
is legally and financially independent. Its 178 member countries
provide its share capital and collectively determine its policies.

The mission of IFC is to promote sustainable private sector investment
in developing and transition countries, helping to reduce poverty and improve
people’s lives. IFC finances private sector investments in the developing
world, mobilizes capital in the international financial markets, helps
clients improve social and environmental sustainability, and provides technical
assistance and advice to governments and businesses. From its founding
in 1956 through FY05, IFC has committed more than $49 billion of its own
funds and arranged $24 billion in syndications for 3,319 companies in 140
developing countries. IFC’s worldwide committed portfolio as of FY05 was
$19.3 billion for its own account and $5.3 billion held for participants
in loan syndications. For more information, visit www.ifc.org.